By the Division of Banks

Proposed Amendments To 801 CMR 4.02
Assessment Formulas for Financial Institutions
and Non-Bank Licensees Regulated by the Division of Banks

A Public Hearing on these Proposed Amendments is scheduled on January 21, 2010.

801 CMR 4.02: 209 CMR Division of Banks and Loan Agencies is hereby amended by striking out

(4) Asset Assessment for Overhead Costs

(a) On January 31st of each year, the Division of Banks shall assign all trust companies, savings banks, co-operative banks and credit unions to one of three asset assessment categories which shall be based upon the institution's supervisory rating assigned by its most recent report of examination completed by either the Division of Banks or the appropriate federal bank regulatory agency as of the preceding December 31st.

An institution's assessment is determined by multiplying its assets by a cumulative declining rate scale. The rate scale is set according to the institution's assigned assessment category. Declining rates are assigned according to increasing asset stratifications, whereby an institution's assets are initially multiplied by the highest rate within an assigned assessment category, followed by decreasing rates for assets in excess of the established asset stratifications.

Asset Stratifications

Category A

Category B

Up to $ 10M

.3000 per $ 1,000

.6000 per $ 1000

Over $ 10M up to $ 50M

.1000

.2000

Over $ 50M up to $ 250M

.0850

.1700

Over $ 250M up to $ 5B

.0625

.1250

Over $ 5B up to $ 30B

.0500

.1000



Asset Stratifications

Category C

Up to $ 10M

.9000 per $ 1000

Over $ 10M up to $ 50M

.3000

Over $ 50M up to $ 250M

.2550

Over $ 250M up to $ 5B

.1875

Over $ 5B up to $ 30B

.1500

(b) Trust Assets .0075 per 1000

and inserting in place thereof the following:

(4) Assessment for Overhead Costs

(a) On January 31 st of each year, the Division of Banks shall assign all trust companies, savings banks, co-operative banks and credit unions to one of three asset assessment categories which shall be based upon the institution's supervisory rating assigned by its most recent report of examination completed by either the Division of Banks or the appropriate federal bank regulatory agency as of the preceding December 31 st.

An institution's assessment is determined by multiplying its assets by a cumulative declining rate scale. Declining rates are assigned according to increasing asset stratifications, whereby an institution's assets are initially multiplied by a base rate, followed by decreasing rates for assets in excess of the established asset stratifications. Category A institutions pay 100% of the calculated asset assessment. Category B institutions pay 200% of the calculated asset assessment. Category C institutions pay 300% of the calculated asset assessment.

If the amount of total balance sheet assets (consolidated domestic and foreign subsidiaries) is:

The Annual Assessment will be:

Over

But Not Over

This Amount

Plus

Of Excess Over

0

250,000

$ 100.00

0.000000000

$0

250,000

10,000,000

$ 100.00

0.000300000

250,000

10,000,000

50,000,000

$ 3,025.00

0.000100000

10,000,000

50,000,000

250,000,000

$ 7,025.00

0.000085000

50,000,000

250,000,000

5,000,000,000

$ 24,025.00

0.000062500

250,000,000

5,000,000,000

30,000,000,000

$ 320,900.00

0.000050000

5,000,000,000

30,000,000,000

$ 1,570,900.00

0.000000000

30,000,000,000

(b) Trust Assets .0075 per 1000

(c) If the assessments from paragraphs (a) and (b) are insufficient to pay for the operations of the Division of Banks in the amount set out in its annual appropriation, the Division of Banks shall assess the remaining amount as a flat fee upon all depository and nondepository financial institutions under its supervision; provided, however, that this assessment may contain such classifications and differentiations based upon the regulatory condition of each institution or such other factors as the Division of Banks considers necessary.